BLACK entrepreneurs have been given their first significant stake in brick production in the Eastern Cape with the announcement of a R60million black economic empowerment deal.

Backed by Investec, the deal will give the black empowerment consortium, Ifutha Investment 25 percent equity in the Offerman Group – the majority shareholder in Makana Brick and Tile, Coega Brick and Nqqura Brick.

The nine members of the Ifutha consortium come from East London, the Transkei area and Grahamstown.

Brick-maker Eric Offerman said the deal would position the group to supply materials to the giant Coega harbour and industrial development.

Central to the deal is the construction of a German-built tunnel-kiln at the Makana Brick and Tile plant on the outskirts of Grahamstown.

It features robotic handling and firing technology used throughout the US and Europe.

Training will be provided by German consultants.

“With the high cost of oil and coal-based energy, the emphasis will be on a highly fuel-efficient plant. We will be using a third of the energy we are using to fire a brick at the moment,” said Makana Brick and Tile managing director Colin Meyer.

“Great emphasis will be placed on protecting the environment. The emissions will meet the German Luft standard, which is one of the strictest in the world, if not the strictest,” he said.
Ground has already been cleared for the 8 000m², 160m-long structure with completion expected in July next year.

The new brick-firing technology will create 105 new jobs and complement the firm’s clamp kilns, which employ 220 people. This will make the company one of Grahamstown’s biggest employers after Rhodes University.

The new plant will produce high-grade face bricks, doubling present annual output from 30million to 60million.

Douglas Sipeliti, the owner of the Eastern Cape firm Umzo Construction, was elected chairman of Makana Brick and Tile.

It had to become a significant force in the clay brick industry in South Africa, he said. — Sapa